Sun Pharma Reports Robust Q2 Results: Net Profit Up 2.6%, Sales Grow 8.6%
Sun Pharmaceutical Industries Limited reported robust Q2 financial results. Sales increased by 8.6% to ₹144,052.00 million, EBITDA grew 14.9% to ₹45,271.00 million, and net profit rose 2.6% to ₹31,180.00 million. India formulations sales grew 11%, while US formulations declined 4.1%. Emerging Markets and Rest of World segments showed strong growth. Notably, US sales of Innovative Medicines surpassed Generics for the first time this quarter. The company maintains its position as India's top pharmaceutical company with an increased market share of 8.3%.
*this image is generated using AI for illustrative purposes only.
Sun Pharmaceutical Industries Limited, India's largest pharmaceutical company, has reported strong financial results for the second quarter, demonstrating resilience and growth across key markets.
Financial Highlights
Sun Pharma's Q2 performance showcases significant year-over-year improvements:
| Metric | Q2 (₹ Million) | YoY Growth |
|---|---|---|
| Sales | 144,052.00 | 8.6% |
| EBITDA | 45,271.00 | 14.9% |
| Net Profit | 31,180.00 | 2.6% |
| EBITDA Margin | 31.3% | - |
The company's profit before exceptional items and tax rose by 15.8% to ₹41,676.00 million, indicating strong operational performance.
Segment Performance
India Formulations
- Sales reached ₹47,348.00 million, growing 11% YoY
- Accounted for 32.9% of total consolidated sales
- Sun Pharma maintains its position as India's No. 1 Pharma Company
- Market share increased from 8.0% to 8.3% (Pharmarack MAT Sept report)
- Launched 9 new products during the quarter
US Formulations
- Sales stood at US$ 496.00 million, a 4.1% YoY decline
- Represented 30.1% of total consolidated sales
- Decline in generics offset by growth in Innovative Medicines
Emerging Markets (EM) Formulations
- Sales reached US$ 325.00 million, up 10.9% YoY
- Contributed 19.7% to total consolidated sales
Rest of World (ROW) Formulations
- Sales grew to US$ 234.00 million, a significant 17.7% YoY increase
- Accounted for 14.2% of total consolidated sales
Innovative Medicines
- Global sales hit US$ 333.00 million, up 16.4% YoY
- Represented 20.2% of total consolidated sales
- US sales of Innovative Medicines surpassed Generics for the first time this quarter
Active Pharmaceutical Ingredients (API)
- External sales were ₹4,299.00 million, down 19.5% YoY
R&D and Product Pipeline
Sun Pharma continues to invest in research and development:
- R&D investment for Q2 was ₹7,827.00 million, or 5.4% of sales
- The company's innovative R&D pipeline includes six novel entities in clinical stage
- In the US market, Sun Pharma has 548 approved ANDAs and 117 pending approval
- 4 ANDAs were filed and 5 received approval during the quarter
- The portfolio includes 57 approved NDAs with 14 awaiting US FDA approval
Management Commentary
Kirti Ganorkar, Managing Director of Sun Pharma, stated, "India, Emerging Markets and Rest of World led our growth for the period. US sales of Innovative Medicines have surpassed Generics for the first time during the quarter. We remain focused on broadening our portfolio while strengthening in-house talent pool and execution capability."
Outlook
With strong performance across key markets and a robust pipeline of innovative medicines, Sun Pharma is well-positioned for sustained growth. The company's focus on broadening its portfolio and strengthening its execution capabilities suggests a positive outlook for the coming quarters.
Sun Pharma continues to leverage its strong market position in India while expanding its presence in emerging markets and advancing its innovative medicines portfolio globally.
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